Container shipping companies' stocks soar amid Houthi attacks

The stock prices of some container shipping companies rallied by double digits on Tuesday, as Houthi attacks sparked concerns that a vital waterway to global trade is becoming inaccessible.

Israeli container shipping company Zim’s share price was up 13.37 percent on Tuesday, while Maersk, the Danish shipping giant operating more than 700 vessels, was up 6.38 percent.

Container shipping companies rallied despite the general stock market slumping, with the S&P 500 down .57 percent.

The Houthis have escalated their attacks in recent days, widening strikes on ships not directly linked to Israel experts say.

On Sunday, the US directly engaged with the Houthis for the first time in the Red Sea, killing 10 Houthi fighters as they attacked a Maersk vessel.

In another escalation, Iran said Monday it dispatched a naval frigate to the Red Sea.

The geopolitical chaos is proving to be a windfall for container ship companies, which can charge higher freight rates because they have to take longer journeys around the Cape of Good Hope in Africa.